Stochastic Momentum Index (SMI) of Money Flow Index (MFI)"He who does not know how to make predictions and makes light of his opponents, underestimating his ability, will certainly be defeated by them."
(Sun Tzu - The Art of War)
▮ Introduction
The Stochastic Momentum Index (SMI) is a technical analysis indicator that uses the difference between the current closing price and the high or low price over a specific time period to measure price momentum.
On the other hand, the Money Flow Index (MFI) is an indicator that uses volume and price to measure buying and selling pressure.
When these two indicators are combined, they can provide a more comprehensive view of price direction and market strength.
▮ Improvements
By combining SMI with MFI, we can gain even more insights into the market. One way to do this is to use the MFI as an input to the SMI, rather than just using price.
This means we are measuring momentum based on buying and selling pressure rather than just price.
Another way to improve this indicator is to adjust the periods to suit your specific trading needs.
▮ What to look
When using the SMI MFI indicator, there are a few things to look out for.
First, look at the SMI signal line.
When the line crosses above -40, it is considered a buy signal, while the crossing below +40 is considered a sell signal.
Also, pay attention to divergences between the SMI MFI and the price.
If price is rising but the SMI MFI is showing negative divergence, it could indicate that momentum is waning and a reversal could be in the offing.
Likewise, if price is falling but the SMI MFI is showing positive divergence, this could indicate that momentum is building and a reversal could also be in the offing.
In the examples below, I show the use in conjunction with the price SMI, in which the MFI SMI helps to anticipate divergences:
In summary, the SMI MFI is a useful indicator that can provide valuable insights into market direction and price strength.
By adjusting the timeframes and paying attention to divergences and signal line crossovers, traders can use it as part of a broader trading strategy.
However, remember that no indicator is a magic bullet and should always be used in conjunction with other analytics and indicators to make informed trading decisions.
Oscillators
Advanced RSI with Volatility Bands [RedWhite]English - Introduction
This indicator uses a standard RSI of 14 periods, however, instead of using static lines of 70 and 30 to identify overbought and oversold zones, a moving average band is added, similar to the Bollinger Bands indicator.
Español - Introducción
Este indicador utiliza un RSI estándar de 14 períodos, sin embargo, en lugar de utilizar líneas estáticas de 70 y 30 para identificar las zonas de sobrecompra y sobreventa, se agrega una banda de medias móviles similar al indicador de las Bandas de Bollinger.
English - Calculation
The moving average band is constructed by calculating a moving average (default of 70 periods) on the standard RSI of 14 periods. From this average, volatility bands are applied, drawing an upper and lower band by using a standard deviation (default of 1).
Español - Cálculo
La banda de medias móviles se construye calculando una media móvil (por defecto de 70 períodos) sobre el RSI estándar de 14 períodos. A partir de esta media, se aplican bandas de volatilidad, dibujando así una banda superior e inferior mediante el uso de una desviación estándar (por defecto de 1).
English - Interpretation
When the RSI surpasses the upper band, the chart's background is shaded by default (green) to signal a possible overbought situation. On the other hand, when the RSI surpasses the lower band, the chart's background is shaded by default (red) to signal a possible oversold situation. The indicator can be customized in terms of period length, moving average values, and standard deviations. In addition, background colors can be adjusted according to the user's preferences.
Español - Interpretación
Cuando el RSI supera la banda superior, el fondo del gráfico se sombra de un color por defecto (verde) para señalar una posible situación de sobrecompra. Por otro lado, cuando el RSI supera la banda inferior, el fondo del gráfico se sombrea de un color por defecto (rojo) para señalar una posible situación de sobreventa. El indicador se puede personalizar en cuanto a la longitud de los períodos, los valores de la media móvil y las desviaciones estándar. Además, los colores del fondo se pueden ajustar según las preferencias del usuario.
English - Conclusion
By incorporating moving average bands, the indicator can provide more precise signals that are adjusted to changing market conditions. Additionally, the function of coloring the background can help traders visualize overbought and oversold zones clearly and make informed decisions accordingly. It is important to note that this indicator is not infallible and should be used in conjunction with other indicators and market analysis to make informed trading decisions.
Español - Conclusión
Al incorporar bandas de medias móviles, el indicador puede proporcionar señales más precisas ajustadas a las condiciones cambiantes del mercado. Además, la función de colorear el fondo puede ayudar a los traders a visualizar claramente las zonas de sobrecompra y sobreventa y tomar decisiones informadas en consecuencia. Es importante tener en cuenta que este indicador no es infalible y debe ser utilizado junto con otros indicadores y análisis del mercado para tomar decisiones de trading informadas.
English: For comparison purposes, the standard 14-period RSI is presented above, and below it, the standard 14-period RSI with volatility bands is shown.
Español: Con fines comparativos, se presenta el RSI estándar de 14 períodos arriba, y debajo se muestra el RSI estándar de 14 períodos con bandas de volatilidad.
English: RSI of 14 periods with a band of moving averages of 70 periods and a standard deviation with a value of 1
Español: RSI de 14 periodos con una banda de medias móviles de 70 periodos y una desviación estándar con un valor de 1
English: RSI of 14 periods with a band of moving averages of 70 periods and a standard deviation with a value of 0
Español: RSI de 14 periodos con una banda de medias móviles de 70 periodos y una desviación estándar con un valor de 0
English - Note
This indicator is inspired by Blai5's "Advanced RSI".
Español- Nota
Este indicador está inspirado en el "RSI Avanzado" de Blai5.
WillyCycle Oscillator&DoubleMa/ErkOzi/"This code creates a technical analysis indicator used to calculate and visualize the WillyCycle oscillator and double moving average indicators on the price of a financial asset. The functionality can be summarized as follows:
*Calculate the WillyCycle oscillator: The WillyCycle is an oscillator calculated based on the highest and lowest values of an asset. This oscillator is used to measure overbought or oversold conditions of the asset.
*Calculate the double moving average: The double moving average helps determine trends by calculating the short-term and long-term moving averages of asset prices.
*Use the WillyCycle oscillator and double moving average indicators together: The WillyCycle oscillator is combined with the double moving averages to provide a clearer indication of overbought and oversold conditions.
*Visualize the indicator with color coding: The indicator is color-coded to show overbought and oversold conditions. Additionally, line and background colors are changed to make the indicator more readable.
Many parameters can be adjusted on the indicator: The indicator can be customized and modified by the user. For example, the period of the WillyCycle oscillator and the lengths of the double moving averages can be adjusted."
The strategy is based on two indicators - the WillyCycle oscillator and the double moving average. The WillyCycle oscillator measures overbought and oversold conditions of the asset based on its highest and lowest values. The double moving average calculates short-term and long-term moving averages of the asset's price, which can help identify trends.
The WillyCycle oscillator and the double moving average are combined in this strategy to provide a clearer indication of overbought and oversold conditions. When the WillyCycle oscillator indicates that the asset is oversold and the short-term moving average crosses above the long-term moving average, it may signal a buy opportunity. Conversely, when the WillyCycle oscillator indicates that the asset is overbought and the short-term moving average crosses below the long-term moving average, it may signal a sell opportunity.
To make it easier for traders to read and interpret the indicator, color-coding is used to indicate overbought and oversold conditions. The user can also customize the indicator by adjusting parameters such as the period of the WillyCycle oscillator and the lengths of the double moving averages.
*ıt provides successful buy and sell signals for price reversals.
*You can open counter trades in overbought and oversold areas by following the averages.
Rainbow Collection - BlueSlopes are an increasingly key concept in Technical Analysis. The most basic type is to calculate them on the prices, but also on technical indicators such as moving averages and the RSI.
In technical analysis, you generally use the RSI to detect imminent reversal moves within a range. In the case of the Blue indicator, we are calculating the slope of the market price and then calculating the RSI of that slope in order to detect instances of reversal.
The Blue indicator is therefore used as follows:
* A bullish signal is generated whenever the 21-period RSI of the 21-period market slope surpasses 30 after having been below it but remains below 35.
*A bearish signal is generated whenever the 21-period RSI of the 21-period market slope breaks 70 after having been above it but remains above 65.
The aim of the Blue indicator is to capture reversals as early as possible through a combination of slopes and entry techniques.
RSI Divergence Method█ OVERVIEW
This is a divergence indicator based on Relative Strength Index (RSI).
My attempt to make this indicator updated based on latest pine script features such as type, object and method.
█ FEATURES
1. Color of plot and label is based on contrast color of chart background. Able to customize color from style menu.
2. Big divergence (Regular Divergence) is based on lime / red color.
3. Small divergence (Hidden Divergence) is based on contrast color of chart background.
█ EXAMPLES / USAGES
Mean Reversion and TrendfollowingTitle: Mean Reversion and Trendfollowing
Introduction:
This script presents a hybrid trading strategy that combines mean reversion and trend following techniques. The strategy aims to capitalize on short-term price corrections during a downtrend (mean reversion) as well as ride the momentum of a trending market (trend following). It uses a 200-period Simple Moving Average (SMA) and a 2-period Relative Strength Index (RSI) to generate buy and sell signals.
Key Features:
Combines mean reversion and trend following techniques
Utilizes 200-period SMA and 2-period RSI
Customizable starting date
Allows for enabling/disabling mean reversion or trend following modes
Adjustable position sizing for trend following and mean reversion
Script Description:
The script implements a trading strategy that combines mean reversion and trend following techniques. Users can enable or disable either of these techniques through the input options. The strategy uses a 200-period Simple Moving Average (SMA) and a 2-period Relative Strength Index (RSI) to generate buy and sell signals.
The mean reversion mode is active when the price is below the SMA200, while the trend following mode is active when the price is above the SMA200. The script generates buy signals when the RSI is below 20 (oversold) in mean reversion mode or when the price is above the SMA200 in trend following mode. The script generates sell signals when the RSI is above 80 (overbought) in mean reversion mode or when the price falls below 95% of the SMA200 in trend following mode.
Users can adjust the position sizing for both trend following and mean reversion modes using the input options.
To use this script on TradingView, follow these steps:
Open TradingView and load your preferred chart.
Click on the 'Pine Editor' tab located at the bottom of the screen.
Paste the provided script into the Pine Editor.
Click 'Add to Chart' to apply the strategy to your chart.
Please note that the past performance of any trading system or methodology is not necessarily indicative of future results. Always use proper risk management and consult a financial advisor before making any investment decisions.
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The following is a summary of the underlying whitepaper (onlinelibrary.wiley.com) for this strategy:
This paper proposes a theory of securities market under- and overreactions based on two psychological biases: investor overconfidence about the precision of private information and biased self-attribution, which causes asymmetric shifts in investors' confidence as a function of their investment outcomes. The authors show that overconfidence implies negative long-lag autocorrelations, excess volatility, and public-event-based return predictability. Biased self-attribution adds positive short-lag autocorrelations (momentum), short-run earnings "drift," and negative correlation between future returns and long-term past stock market and accounting performance.
The paper explains that there is empirical evidence challenging the traditional view that securities are rationally priced to reflect all publicly available information. Some of these anomalies include event-based return predictability, short-term momentum, long-term reversal, high volatility of asset prices relative to fundamentals, and short-run post-earnings announcement stock price "drift."
The authors argue that investor overconfidence can lead to stock prices overreacting to private information signals and underreacting to public signals. This overreaction-correction pattern is consistent with long-run negative autocorrelation in stock returns, excess volatility, and further implications for volatility conditional on the type of signal. The market's tendency to over- or underreact to different types of information allows the authors to address the pattern that average announcement date returns in virtually all event studies are of the same sign as the average post-event abnormal returns.
Biased self-attribution implies short-run momentum and long-term reversals in security prices. The dynamic analysis based on biased self-attribution can also lead to a lag-dependent response to corporate events. Cash flow or earnings surprises at first tend to reinforce confidence, causing a same-direction average stock price trend. Later reversal of overreaction can lead to an opposing stock price trend.
The paper concludes by summarizing the findings, relating the analysis to the literature on exogenous noise trading, and discussing issues related to the survival of overconfident traders in financial markets.
Stochastic Momentum Index (SMI) Refurbished▮Introduction
Stochastic Momentum Index (SMI) Indicator is a technical indicator used in technical analysis of stocks and other financial instruments.
It was developed by William Blau in 1993 and is considered to be a momentum indicator that can help identify trend reversal points.
Basically, it's a combination of the True Strength Index with a signal line to help identify turning points in the market.
SMI uses the stochastic formula to compare the current closing price of an asset with the maximum and minimum price range over a specific period.
He then compares this ratio to a short-term moving average to create an indicator that oscillates between -100 and +100.
When the SMI is above 0, it is considered positive, indicating that the current price is above the short-term moving average.
When it is below 0, it is considered negative, indicating that the current price is below the short-term moving average.
Traders use the SMI to identify potential trend reversal points.
When the indicator reaches an extreme level above +40 or below -40, a trend reversal is possible.
Furthermore, traders also watch for divergences between the SMI and the asset price to identify potential trading opportunities.
It is important to remember that the SMI is a technical indicator and as such should be used in conjunction with other technical analysis tools to get a complete picture of the market situation.
▮ Improvements
The following features were added:
1. 7 color themes, for TSI, Signal and Histogram.
2. Possibility to customize moving average type for TSI/Signal.
3. Dynamic Zones.
4. Crossing Alerts.
5. Alert points on specific ranges.
5. Coloring of bars according to TSI/Signal/Histogram.
▮ Themes
Examples:
▮ About Dynamic Zones
'Most indicators use a fixed zone for buy and sell signals.
Here's a concept based on zones that are responsive to the past levels of the indicator.'
The concept of Dynamic Zones was described by Leo Zamansky ( Ph .D.) and David Stendahl, in the magazine of Stocks & Commodities V15:7 (306-310).
Basically, a statistical calculation is made to define the extreme levels, delimiting a possible overbought/oversold region.
Given user-defined probabilities, the percentile is calculated using the method of Nearest Rank.
It is calculated by taking the difference between the data point and the number of data points below it, then dividing by the total number of data points in the set.
The result is expressed as a percentage.
This provides a measure of how a particular value compares to other values in a data set, identifying outliers or values that are significantly higher or lower than the rest of the data.
▮ What to look for
1. Divergences/weakening of a trend/reversal:
2. Supports, resistances, pullbacks:
3. Overbought/Oversold Points:
▮ Thanks and Credits
- TradingView and PineCoders: for SMI and Moving Averages
- allanster: for Dynamic Zones
The Flash-Strategy (Momentum-RSI, EMA-crossover, ATR)The Flash-Strategy (Momentum-RSI, EMA-crossover, ATR)
Are you tired of manually analyzing charts and trying to find profitable trading opportunities? Look no further! Our algorithmic trading strategy, "Flash," is here to simplify your trading process and maximize your profits.
Flash is an advanced trading algorithm that combines three powerful indicators to generate highly selective and accurate trading signals. The Momentum-RSI, Super-Trend Analysis and EMA-Strategy indicators are used to identify the strength and direction of the underlying trend.
The Momentum-RSI signals the strength of the trend and only generates trading signals in confirmed upward or downward trends. The Super-Trend Analysis confirms the trend direction and generates signals when the price breaks through the super-trend line. The EMA-Strategy is used as a qualifier for the generation of trading signals, where buy signals are generated when the EMA crosses relevant trend lines.
Flash is highly selective, as it only generates trading signals when all three indicators align. This ensures that only the highest probability trades are taken, resulting in maximum profits.
Our trading strategy also comes with two profit management options. Option 1 uses the so-called supertrend-indicator which uses the dynamic ATR as a key input, while option 2 applies pre-defined, fixed SL and TP levels.
The settings for each indicator can be customized, allowing you to adjust the length, limit value, factor, and source value to suit your preferences. You can also set the time period in which you want to run the backtest and how many dollar trades you want to open in each position for fully automated trading.
Choose your preferred trade direction and stop-loss/take-profit settings, and let Flash do the rest. Say goodbye to manual chart analysis and hello to consistent profits with Flash. Try it now!
General Comments
This Flash Strategy has been developed in cooperation between Baby_whale_to_moon and JS-TechTrading. Cudos to Baby_whale_to_moon for doing a great job in transforming sophisticated trading ideas into pine scripts.
Detailed Description
The “Flash” script considers the following indicators for the generation of trading signals:
1. Momentum-RSI
2. ‘Super-Trend’-Analysis
3. EMA-Strategy
1. Momentum-RSI
• This indicator signals the strength of the underlying upward- or downward-trend.
• The signal range of this indicator is from 0 to 100. Values > 60 indicate a confirmed upward- or downward-trend.
• The strategy will only generate trading signals in case the stock (or any other financial security) is in a confirmed upward- (long entry signals) or downward-trend (short entry signals).
• This indicator provides information with regards to the strength of the underlying trend and it does not give any insight with regard to the direction of the trend. Therefore, this strategy also considers other indicators which provide technical confirmation with regards to the direction of the underlying trend.
Graph 1 shows this concept:
• The Momentum-RSI indicator gives lower readings during consolidation phases and no trading signals are generated during these periods.
Example (graph 2):
2. Super-Trend Analysis
• The red line in the graph below represents the so-called super-trend-line. Trading signals are only generated in case the price action breaks through this super-trend-line indicating a new confirmed upward-trend (or downward-trend, respectively).
• If that happens, the super trend-line changes its color from red to green, giving confirmation that the trend changed from bearish to bullish and long-entries can be considered.
• The vice-versa approach can be considered for short entries.
Graph 3 explains this concept:
3. Exponential Moving Average / EMA-Strategy
The functionality of this EMA-element of the strategy has been programmed as follows:
• The exponential moving average and two other trend lines are being used as qualifiers for the generation of trading-signals.
• Buy-signals for long-entries are only considered in case the EMA (yellow line in the graph below) crosses the red line.
• Sell-signals for short-entries are only considered in case the EMA (yellow line in the graph below) crosses the green line.
An example is shown in graph 4 below:
We use this indicator to determine the new trend direction that may occur by using the data of the price's past movement.
4. Bringing it all together
This section describes in detail, how this strategy combines the Momentum-RSI, the super-trend analysis and the EMA-strategy.
The strategy only generates trading-signals in case all of the following conditions and qualifiers are being met:
1. Momentum-RSI is higher than the set value of this strategy. The standard and recommended value is 60 (graph 5):
2. The super-trend analysis needs to indicate a confirmed upward-trend (for long-entry signals) or a confirmed downward-trend (for short-entry signals), respectively.
3. The EMA-strategy needs to indicate that the stock or financial security is in a confirmed upward-trend (long-entries) or downward-trend (short-entries), respectively.
The strategy will only generate trading signals if all three qualifiers are being met. This makes this strategy highly selective and is the key secret for its success.
Example for Long-Entry (graph 6):
When these conditions are met, our Long position is opened.
Example for Short-Entry (graph 7):
Trade Management Options (graph 8)
Option 1
In this dynamic version, the so-called supertrend-indicator is being used for the trade exit management. This supertrend-indicator is a sophisticated and optimized methodology which uses the dynamic ATR as one of its key input parameters.
The following settings of the supertrend-indicator can be changed and optimized (graph 9):
The dynamic SL/TP-lines of the supertrend-indicator are shown in the charts. The ATR-length and the supertrend-factor result in a multiplier value which can be used to fine-tune and optimize this strategy based on the financial security, timeframe and overall market environment.
Option 2 (graph 10):
Option 2 applies pre-defined, fixed SL and TP levels which will appear as straight horizontal lines in the chart.
Settings options (graph 11):
The following settings can be changed for the three elements of this strategy:
1. (Length Mom-Rsi): Length of our Mom-RSI indicator.
2. Mom-RSI Limit Val: the higher this number, the more momentum of the underlying trend is required before the strategy will start creating trading signals.
3. The length and factor values of the super trend indicator can be adjusted:ATR Length SuperTrend and Factor Super Trend
4. You can set the source value used by the ema trend indicator to determine the ema line: Source Ema Ind
5. You can set the EMA length and the percentage value to follow the price: Length Ema Ind and Percent Ema Ind
6. The backtesting period can be adjusted: Start and End time of BackTest
7. Dollar cost per position: this is relevant for 100% fully automated trading.
8. Trade direction can be adjusted: LONG, SHORT or BOTH
9. As we explained above, we can determine our stop-loss and take-profit levels dynamically or statically. (Version 1 or Version 2 )
Display options on the charts graph 12):
1. Show horizontal lines for the Stop-Loss and Take-profit levels on the charts.
2. Display relevant Trend Lines, including color setting options for the supertrend functionality. In the example below, green lines indicate a confirmed uptrend, red lines indicate a confirmed downtrend.
Other comments
• This indicator has been optimized to be applied for 1 hour-charts. However, the underlying principles of this strategy are supply and demand in the financial markets and the strategy can be applied to all timeframes. Daytraders can use the 1min- or 5min charts, swing-traders can use the daily charts.
• This strategy has been designed to identify the most promising, highest probability entries and trades for each stock or other financial security.
• The combination of the qualifiers results in a highly selective strategy which only considers the most promising swing-trading entries. As a result, you will normally only find a low number of trades for each stock or other financial security per year in case you apply this strategy for the daily charts. Shorter timeframes will result in a higher number of trades / year.
• Consequently, traders need to apply this strategy for a full watchlist rather than just one financial security.
Advanced VWAP_Pullback Strategy_Trend-Template QualifierGeneral Description and Unique Features of this Script
Introducing the Advanced VWAP Momentum-Pullback Strategy (long-only) that offers several unique features:
1. Our script/strategy utilizes Mark Minervini's Trend-Template as a qualifier for identifying stocks and other financial securities in confirmed uptrends. Mark Minervini, a 2x US Investment Champion, developed the Trend-Template, which covers eight different and independent characteristics that can be adjusted and optimized in this trend-following strategy to ensure the best results. The strategy will only trigger buy-signals in case the optimized qualifiers are being met.
2. Our strategy is based on the supply/demand balance in the market, making it timeless and effective across all timeframes. Whether you are day trading using 1- or 5-min charts or swing-trading using daily charts, this strategy can be applied and works very well.
3. We have also integrated technical indicators such as the RSI and the MA / VWAP crossover into this strategy to identify low-risk pullback entries in the context of confirmed uptrends. By doing so, the risk profile of this strategy and drawdowns are being reduced to an absolute minimum.
Minervini’s Trend-Template and the ‘Stage-Analysis’ of the Markets
This strategy is a so-called 'long-only' strategy. This means that we only take long positions, short positions are not considered.
The best market environment for such strategies are periods of stable upward trends in the so-called stage 2 - uptrend.
In stable upward trends, we increase our market exposure and risk.
In sideways markets and downward trends or bear markets, we reduce our exposure very quickly or go 100% to cash and wait for the markets to recover and improve. This allows us to avoid major losses and drawdowns.
This simple rule gives us a significant advantage over most undisciplined traders and amateurs!
'The Trend is your Friend'. This is a very old but true quote.
What's behind it???
• 98% of stocks made their biggest gains in a Phase 2 upward trend.
• If a stock is in a stable uptrend, this is evidence that larger institutions are buying the stock sustainably.
• By focusing on stocks that are in a stable uptrend, the chances of profit are significantly increased.
• In a stable uptrend, investors know exactly what to expect from further price developments. This makes it possible to locate low-risk entry points.
The goal is not to buy at the lowest price – the goal is to buy at the right price!
Each stock goes through the same maturity cycle – it starts at stage 1 and ends at stage 4
Stage 1 – Neglect Phase – Consolidation
Stage 2 – Progressive Phase – Accumulation
Stage 3 – Topping Phase – Distribution
Stage 4 – Downtrend – Capitulation
This strategy focuses on identifying stocks in confirmed stage 2 uptrends. This in itself gives us an advantage over long-term investors and less professional traders.
By focusing on stocks in a stage 2 uptrend, we avoid losses in downtrends (stage 4) or less profitable consolidation phases (stages 1 and 3). We are fully invested and put our money to work for us, and we are fully invested when stocks are in their stage 2 uptrends.
But how can we use technical chart analysis to find stocks that are in a stable stage 2 uptrend?
Mark Minervini has developed the so-called 'trend template' for this purpose. This is an essential part of our JS-TechTrading pullback strategy. For our watchlists, only those individual values that meet the tough requirements of Minervini's trend template are eligible.
The Trend Template
• 200d MA increasing over a period of at least 1 month, better 4-5 months or longer
• 150d MA above 200d MA
• 50d MA above 150d MA and 200d MA
• Course above 50d MA, 150d MA and 200d MA
• Ideally, the 50d MA is increasing over at least 1 month
• Price at least 25% above the 52w low
• Price within 25% of 52w high
• High relative strength according to IBD.
NOTE: In this basic version of the script, the Trend-Template has to be used as a separate indicator on TradingView (Public Trend-Template indicators are available in TradingView – community scripts). It is recommended to only execute buy signals in case the stock or financial security is in a stage 2 uptrend, which means that the criteria of the trend-template are fulfilled.
This strategy can be applied to all timeframes from 5 min to daily.
The VWAP Momentum-Pullback Strategy
For the JS-TechTrading VWAP Momentum-Pullback Strategy, only stocks and other financial instruments that meet the selected criteria of Mark Minervini's trend template are recommended for algorithmic trading with this startegy.
A further prerequisite for generating a buy signals is that the individual value is in a short-term oversold state (RSI).
When the selling pressure is over and the continuation of the uptrend can be confirmed by the MA / VWAP crossover after reaching a price low, a buy signal is issued by this strategy.
Stop-loss limits and profit targets can be set variably. You also have the option to make use of the trailing stop exit strategy.
Relative Strength Index (RSI)
The Relative Strength Index (RSI) is a technical indicator developed by Welles Wilder in 1978. The RSI is used to perform a market value analysis and identify the strength of a trend as well as overbought and oversold conditions. The indicator is calculated on a scale from 0 to 100 and shows how much an asset has risen or fallen relative to its own price in recent periods.
The RSI is calculated as the ratio of average profits to average losses over a certain period of time. A high value of the RSI indicates an overbought situation, while a low value indicates an oversold situation. Typically, a value > 70 is considered an overbought threshold and a value < 30 is considered an oversold threshold. A value above 70 signals that a single value may be overvalued and a decrease in price is likely , while a value below 30 signals that a single value may be undervalued and an increase in price is likely.
For example, let's say you're watching a stock XYZ. After a prolonged falling movement, the RSI value of this stock has fallen to 26. This means that the stock is oversold and that it is time for a potential recovery. Therefore, a trader might decide to buy this stock in the hope that it will rise again soon.
The MA / VWAP Crossover Trading Strategy
This strategy combines two popular technical indicators: the Moving Average (MA) and the Volume Weighted Average Price (VWAP). The MA VWAP crossover strategy is used to identify potential trend reversals and entry/exit points in the market.
The VWAP is calculated by taking the average price of an asset for a given period, weighted by the volume traded at each price level. The MA, on the other hand, is calculated by taking the average price of an asset over a specified number of periods. When the MA crosses above the VWAP, it suggests that buying pressure is increasing, and it may be a good time to enter a long position. When the MA crosses below the VWAP, it suggests that selling pressure is increasing, and it may be a good time to exit a long position or enter a short position.
Traders typically use the MA VWAP crossover strategy in conjunction with other technical indicators and fundamental analysis to make more informed trading decisions. As with any trading strategy, it is important to carefully consider the risks and potential rewards before making any trades.
This strategy is applicable to all timeframes and the relevant parameters for the underlying indicators (RSI and MA/VWAP) can be adjusted and optimized as needed.
Backtesting
Backtesting gives outstanding results on all timeframes and drawdowns can be reduced to a minimum level. In this example, the hourly chart for MCFT has been used.
Settings for backtesting are:
- Period from Jan 2020 until March 2023
- Starting capital 100k USD
- Position size = 25% of equity
- 0.01% commission = USD 2.50.- per Trade
- Slippage = 2 ticks
Other comments
- This strategy has been designed to identify the most promising, highest probability entries and trades for each stock or other financial security.
- The combination of the Trend-Template and the RSI qualifiers results in a highly selective strategy which only considers the most promising swing-trading entries. As a result, you will normally only find a low number of trades for each stock or other financial security per year in case you apply this strategy for the daily charts. Shorter timeframes will result in a higher number of trades / year.
- Consequently, traders need to apply this strategy for a full watchlist rather than just one financial security.
Momentum PlayTraders always need a confirmation of momentum in price action to ride the swings.
Momentum Play Indicator consists of the below:
Bullish Conditions :
1)EMA 8 above EMA 34 and rising
2)Candle close above 5 candle high
3) RSI above 60
4) Volume above 5 candles avg. volume
5) ADX above 20
Bearish Conditions :
1)EMA 8 below EMA 34 and falling
2)Candle close below 5 candle low
3) RSI below 40
4) Volume above 5 candles avg. volume
5) ADX above 20
Traders can change the inputs as per their liking to adjust as per their comfortable timeframe.
Credits: Special Thanks to Mr. DTBHAT for sharing the above conditions.
Cloud Bunching [5ema]Reused some functions from (i believe made by):
©paaax: The table position function.
@QuantNomad: The function calculated value and array screener for 40+ instruments .
How it uses:
Gives signal when the cloud is bunching with ratio smaller than the set ratio and the close price breaking out the cloud.
Track 40 different symbols, on any timeframe to follow and alert.
When a symbol has a signal, it will display on the chart and send an alert.
How it works:
The cloud created by 5 EMA (20, 50, 200, 460, 610). Upper Cloud is max EMA , Lower Cloud is min EMA . Center line is averange (5 EMA )
If the ratio upper / lower < input bunching (%) -> change color of cloud.
Get the signal if: the close price break out cloud (with bar is shooting, or hammer ,...) and high volume (or not).
With another symbols (max 40 ) also use that function with any time frame. By request.security() and array function.
How it setting:
Change the bunching rate (%) of the clouds for any symbols.
Change the percentage (%) of the close price that breaks out of the bunching cloud.
Choose volume condition.
Show or turn off the cloud, table.
Select the symbol to follow.
Choose a timeframe to follow other symbols.
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This indicator is for reference only, you need your own method and strategy.
If you have any questions, please let me know in the comments.
Mason’s Line IndicatorThe Macon Strategy is an idea conceived by Didier Darcet , co-founder of Gavekal Intelligence Software. Inspired by the Water Level, an instrument used by masons to check the horizontality or verticality of a wall. This method aims to measure the psychology of financial markets and determine if the market is balanced or tilting towards an unfavorable side, focusing on the behavioral risk of markets rather than economic or political factors.
The strategy examines the satisfaction and frustration of investors based on the distance between the low and high points of the market over a period of one year. Investor satisfaction is influenced by the current price of the index and the path taken to reach that price. The distance to the low point provides satisfaction, while the distance to the high point generates frustration. The balance between the two dictates investors’ desire to hold or sell their positions.
To refine the strategy, it is important to consider the opinion of a group of investors rather than just one individual. The members of a hypothetical investor club invest successively throughout the past year. The overall satisfaction of the market on a given day is a democratic expression of all participants.
If the overall satisfaction is below 50%, investors are frustrated and sell their positions. If it is above, they are satisfied and hold their positions. The position of the group of investors relative to the high and low points represents the position of the air bubble in the water level. Market performance is measured day by day based on participant satisfaction or dissatisfaction.
In conclusion, memory, emotions, and decision-making ability are closely linked, and their interaction influences investment decisions. The Macon Strategy highlights the importance of the behavioral dimension in understanding financial market dynamics. By studying investor behavior through this strategy, it is possible to better anticipate market trends and make more informed investment decisions.
Presentation of the Mason’s Line Indicator:
The main strategy of this indicator is to measure the average satisfaction of investors based on the position of an imaginary air bubble in a tube delimited by the market’s highs and lows over a given period. After calculating the satisfaction level, it is then normalized between 0 and 1, and a moving average can be used to visualize trends.
Key features:
Calculation of highs and lows over a user-defined period.
Determination of the position of the air bubble in the tube based on the closing price.
Calculation of the average satisfaction of investors over a selected period.
Normalization of the average satisfaction between 0 and 1.
Visualization of normalized or non-normalized average satisfaction levels, as well as their corresponding moving averages.
User parameters:
Period for min and max (days) : Sets the period over which highs and lows will be calculated (1 to 365 days).
Period for average satisfaction (days) : Determines the period over which the average satisfaction of investors will be calculated (1 to 365 days).
Period for SMA : Sets the period of the simple moving average used to smooth the data (1 to 1000 days).
Bubble_value : Adjustment of the air bubble value, ranging from 0 to 1, in increments of 0.025.
Normalized average satisfaction : Option to choose whether to display the normalized or non-normalized average satisfaction.
Please note that the Mason’s Line Indicator is not a guarantee of future market performance and should be used in conjunction with proper risk management. Always ensure that you have a thorough understanding of the indicator’s methodology and its limitations before making any investment decisions. Additionally, past performance is not indicative of future results.
RSI Screener and Divergence [5ema]
Displayed on the RSI chart according to a custom timeframe.
Displays the RSI tracking table of various timeframes.
Identify normal divergence, hidden divergence on RSI chat.
Show buy and sell signals (strong, weak) on the board.
Send notifications when RSI has a buy or sell signal.
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I reused some functions, made by (i believe that):
©paaax : The table position function.
@everget : The RSI divergence function.
@QuantNomad : The function calculated value and array to show on table for input symbols.
I have commented in my code. Thanks so much!
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How it works:
1. Input :
input.int length of RSI => calculate RSI.
input.int upper/lower => checking RSI overbought/oversold.
input.int right bars / left bars => returns price of the pivot low & high point => checking divergence.
input.int range upper / lower bars => compare the low & high point => checking divergence.
input.timeframe => request.security another time frame.
input.string table position => display screener table.
2. Input bool:
plot RSI on chart.
Plot Regular Bullish divergence .
Regular Bearish divergence.
Hidden Bullish divergence .
Hidden Bearish divergence.
3. Basic calculated:
Make function for RSI , pivot low & high point of RSI and price.
Request.security that function for earch time frame.
Result RSI, Divergence.
4. Condition of signal:
Buy condition:
RSI oversold (1)
Bullish divergence (2).
=> Buy if (1) and (2), review buy (1) or (2).
Sell condition:
RSI overbought (3).
Bearish divergence (4).
=> Sell if (3) and (4), review sell (3) or (4).
5. Table screener:
Time frame.
RSI (green - oversold, red - overbought)
Divergence (⬈⬈ - regular bullish , ⬊⬊ regular bearish , ⬊ - hidden bullish , ⬈ - hidden bearish ).
Signal (🟢 - Buy, 🔴 - sell, green 〇 - review buy, red 〇 - review sell)
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This indicator is for reference only, you need your own method and strategy.
If you have any questions, please let me know in the comments.
SynthSAR ConfirmationThis indicator represents confirmation of a trend based on the PSAR indicator and includes signals from the MACD, stochastic oscillator, and awesome oscillator. It displays the points of the parabolic SAR on the chart, which help determine the direction of the trend. Additionally, the indicator allows for tracking signals based on the combined analysis of three other technical indicators: MACD, stochastic oscillator, and awesome oscillator. Furthermore, the indicator includes the ability to display buy/sell labels and signals for changing the trend direction. This is not an investment recommendation.Very effective in higher timeframes.If the MACD "macd line" crosses the "signal line" from above and the Stochastic %K line crosses the %D line from above, and the last column in the Avesome Oscillator is red, then the indicator gives a signal to sell. If the MACD "macd line" crosses the "signal line" from below and the Stochastic %K line crosses the %D line from below, and the last column in the Avesome Oscillator is green, then the indicator gives a signal to buy.
ADX trend reversal/continuation spotterThis indicator is based on ADX and uses a method based on pivot points to identify a possible trend reversal or trend continuation.
To better understand how to use this indicator, follow these instructions:
Check which type of line ADX is below/above.
If the ADX line is above the green line and has changed color, you can expect a possible trend change.
Similarly, if the ADX line is below the red line and has changed color, you can expect a continuation of the previous trend or a possible trend uptake based on the current situation in the chart.
FX:EURUSD
SumIndTarget:
The SumInd indicator combines Heiking Ashi, Sar Parabolic, Koncord, RSI, DMI, MACD and Bollinger Bands to give buy or sell signals or trends. This are called base indicators.
The goal is to have a clear and quick buy or sell suggestion and to avoid evaluating all or some of the named indicators, especially if they give contradictory signals among them. This speed and simplicity helps the trader to see several tickers in less time. It is intended for all markets and time periods where the above-mentioned indicators can be used.
How it works:
SumInd already has the importance or "weight" of each indicator named above configured, but they can be modified. You can set 0% for no use, or any other value based on the weight you want to give it, between 1% and 200% where 100% is the normal use, and increases or decreases based on importance.
Each base indicator can give signals to buy, sell or just "wait and see".
Each base indicator is checked for a buy signal, in which case its weight is added to the positive or green line, and if there is a sell signal, its weight is subtracted from the sell or red line. in case of indeterminacy or 'wait and see', nothing is added to any signal.
The yellow or total line is the sum of the buy or green signal plus the sell or red signal.
If the yellow or total line rises above the buy level, the background changes to green and an up arrow appears at the bottom of the chart indicating the buy suggestion, because most of the indicators you are interested in gave a buy signal.
If the yellow line or total falls below the sell level, the background changes to red and a downward arrow appears in the upper area of the chart indicating the sell suggestion, because most of the indicators you are interested in gave a sell signal.
The Buy and Sell level can be changed according to the security of the suggestion you need.
Areas without arrows or marks are considered "wait and see" areas, the previous trend in principle continues. They can be marked with the default background if desired from the SumInd settings.
Details and criterials:
Each of the following indicators can be turned on or off and assigned different weights of importances, by whether or not it shares the following criteria:
Heikin Ashi candles: add or subtract half an assigned weight if there is a buy or sell candle and the other half weight if there are two consecutive candles with the same signal.
RSI: Adds or subtracts the assigned weight if the ema is below or above the signal.
Parabolic Sar: Adds half a weight in transition to buy or sell and another half weight if there are two consecutive signals of the same trend.
Koncord: Add or subtract the weight if the current trend (mountain) grows or decreases respectively from the 4th previous time signal, and also the value (red line) is less than 35 or exceeds 65 respectively.
DMI: Adds or subtracts a quarter of the weight assigned by the DMI signal multiplied by the value of DMI, if the positive or negative signal exceeds the other negative or positive signal by 15% respectively.
Bollinger Bands: Add or subtract the weight if the previous third signal touches or falls out of the zone and keeps growing or decreasing respectively.
MACd: Add or subtract one third of the weight if the last 3 time signals are rising or falling, Add or subtract another third if the fast signal is above or below the slow signal, and Add or subtract the last third of the weight if it is rising with the negative fast signal, or falling with the positive fast signal.
Orion:SagittaSagitta
Sagitta is an indicator the works to assist in the validation of potential long entries and to place stop-loss orders. Sagitta is not a "golden indicator" but more of a confirmation indicator of what prices might be suggesting.
The concept is that while stocks can turn in one bar, it usually takes two bars or more to signal a turn. So, using a measurement of two bars help determine the potential turning of prices.
Behind the scenes, Sagitta is nothing more than a 2 period stochastic which has had its values divided into five specific zones.
Dividing the range of the two bars in five sections, the High is equal to 100 and the Low is equal to 0.
The zones are:
20 = bearish (red) – This is when the close is the lower 20% of the two bars
40 = bearish (orange) – This is when the close is between the lower 20% and 40% of the two bars.
60 = neutral (yellow) – This is when the close is between the middle 40% - 60% of the two bars.
80 = bullish (blue) – This is when the close is between the upper 60% - 80% of the two bars.
100 = bullish (green) – This is when the close is above the upper 80% of the bar.
The general confirmation concept works as such:
When the following bar is of a higher value than the previous bar, there is potential for further upward price movement. Conversely when the following bar is lower than the previous bar, there is potential for further downward movement.
Going from a red bar to orange bar Might be an indication of a positive turn in direction of prices.
Going from a green bar to an orange bar would also be considered a negative directional turn of prices.
When the follow on bar decreases (ie, green to blue, blue to yellow, etc) placing a stop-loss would be prudent.
Maroon lines in the middle of a bar is an indication that prices are currently caught in consolidation.
Silver/Gray bars indicate that a high potential exists for a strong upward turn in prices exists.
Consolidation is calculated by determining if the close of one bar is between the high and low of another bar. This then establishes the range high and low. As long as closes continue with this range, the high and low of the range can expand. When the close is outside of the range, the consolidation is reset.
Signals in areas of consolidation (maroon center bar) should be looked upon as if the prices are going to challenge the high of the consolidation range and not necessarily break through.
The entry technique used is:
The greater of the following two calculations:
High of signal bar * 1.002 or High of signal bar + .03
The stop-loss technique used is:
The lesser of the following two calculations:
Low of signal bar * .998 or Low of signal bar - .03
IF an entry signal is generated and the price doesn’t reach the entry calculation. It is considered a failed entry and is not considered a negative or that you missed out on something. This has saved you from losing money since the prices are not ready to commit to the direction.
When placing a stop-loss, it is never suggested that you lower the value of a stop-loss. Always move your stop-losses higher in order to lock in profit in case of a negative turn.
Rainbow Collection - VioletMoving averages come in all shapes and types. The most basic type is the simple moving average which is simply the sum divided by the quantity. Therefore, the simple moving average is the sum of the values divided by their number.
In technical analysis, you generally use moving averages to understand the underlying trend and to find trading signals. In the case of the Violet indicator, we are using a Hull moving average which is a special variation based on different weights to minimize lag.
The Violet indicator is therefore used as follows:
* A bullish signal is generated whenever the close price surpasses the 20-period Hull moving average while the previous close prices from periods were all below their respective Hull moving average of the period.
*A bearish signal is generated whenever the close price breaks the 20-period Hull moving average while the previous close prices from periods were all above their respective Hull moving average of the period.
The aim of the Violet indicator is to capture reversals as early as possible through a combination of lagged conditions based on the Fibonacci sequence.
[Hoss] OBV RSIThe OBV ( On Balance Volume ) RSI ( Relative Strength Index ) indicator is an innovative tool that combines the power of OBV and RSI to provide traders with a comprehensive view of the market's momentum and volume dynamics. This combination enables users to make better-informed trading decisions by analyzing the relationship between price, volume , and relative strength .
The script starts by calculating the On Balance Volume , which is a cumulative volume-based indicator that measures buying and selling pressure. The OBV increases when the closing price is higher than the previous closing price and decreases when the closing price is lower than the previous closing price. This helps traders identify potential price trend reversals based on volume accumulation or distribution.
Next, the script computes the Relative Strength Index ( RSI ) based on the OBV values, offering a unique perspective on the market's momentum through the lens of volume . The RSI is a popular momentum indicator that ranges from 0 to 100 and helps traders identify overbought and oversold conditions. In this script, the user can define the RSI length and the higher and lower levels (default values are 70 and 30, respectively).
A distinctive feature of this OBV RSI indicator is the addition of a monitor that counts the number of times the RSI crosses above the higher level and below the lower level within a user-defined lookback period. This monitor is displayed as a table in the bottom right corner of the chart and can be enabled or disabled through an input option.
The cross count monitor provides valuable insights into the historical frequency of RSI crossings, helping traders to identify potential trading opportunities based on historical price behavior around these levels.
Cryptocurrency Market Sentiment v1.0Introduction:
Capable of observing the market sentiment of the cryptocurrency market
The relative status of BTC and altcoins
How it works:
1. The general uptrend process of the cryptocurrency market is BTC → ETH → high-cap altcoins → low-cap altcoins. When funds cannot push up BTC's market cap, funds gradually flow into smaller-cap altcoins until the upward trend ends.
2. Select ETH as the representative of altcoins, and understand the sentiment and current stage
3. Mathematical principle : divide the price of ETH by the price of BTC, and then apply it to the RSI formula .
How to use it:
1. Similar to the RSI indicator , when CMS enters the overbought zone, it represents an active altcoin market, a passionate market sentiment , and the end of the uptrend.
2. When CMS enters the oversold zone, it indicates the leading stage of BTC in the rising trend or the capital flow back to BTC in the declining process .
3. If CMS is at a low level, long positions should focus on altcoins, and short positions should focus on BTC, and vice versa.
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简单介绍：
能够观察加密市场市场情绪
BTC和寨币的相对状态
如何工作：
1、加密市场一般的上涨过程为 BTC → ETH → 大市值山寨 → 小市值山寨，当资金无法推动大市值的BTC上涨时，资金就会逐渐流向市值较小的山寨，直到一轮上涨结束。
2、选取ETH作为altcoins的代表，通过ETH与BTC的关系来了解加密市场的情绪和目前上涨的阶段。
3、数学原理：将ETH的价格/BTC的价格，随后将其带入RSI公式
如何使用：
1、与RSI指标类似，当cms进入超买时，代表寨币市场的活跃，市场情绪热烈，上涨进入尾声。
2、当cms进入超卖时，为上涨中BTC领涨的阶段或下降过程中资金回流BTC。
3、如果cms在低位，做多应关注altcoins，做空应关注btc，反之亦然。
Futures/Spot Ratiowhat is Futures /Spot Ratio?
Although futures and spot markets are separate markets, they are correlated. arbitrage bots allow this gap to be closed. But arbitrage bots also have their limits. so there are always slight differences between futures and spot markets. By analyzing these differences, the movements of the players in the market can be interpreted and important information about the price can be obtained. Futures /Spot Ratio is a tool that facilitates this analysis.
what it does?
it compresses the ratio between two selected spot and futures trading pairs between 0 and 100. its purpose is to facilitate use and interpretation. it also passes a regression (Colorful Regression) through the middle of the data for the same purpose.
about Colorful Regression:
how it does it?
it uses this formula:
how to use it?
use it to understand whether the market is priced with spot trades or leveraged positions. A value of 50 is the breakeven point where the ratio of the spot and leveraged markets are equal. Values above 50 indicate excess of long positions in the market, values below 50 indicate excess of short positions. I have explained how to interpret these ratios with examples below.
DSS Bressert Stochastic MTFDouble Smoothed Stochastics – DSS Bressert is an oscillator introduced by William Blau and Walter Bressert shortly after each other in two slightly different versions. The calculation of DSS Bressert values is similar to the stochastic indicator. The difference is the use of double exponential smoothing. The advantages over the classic stochastic oscillators are the fast response to price changes in a still very smooth pattern. In addition, the extreme zones at the other end of the scale are reached quite frequently, even in strong trends, resulting in many trend conforming signals. Double Smoothed Stochastics – DSS The Bressert values are the same as the stochastics – values above 80 indicate an overbought condition of the market, values below 20 indicate an oversold condition of the market.
This is a full implementation of the original Stochastic Calulation with Multi-Time-Frame options. Other available scrips are lagging here and messing MTF up...
This Scrip will plot 2 lines for the double smoothed Stochastic based on the original exponential calculation from Blau/Bressert. Whilst the original stochastic is only simple moving average.
If you are a daytrader or scalper, the script is able to show a slow line and a fast line pair. Preferred Settings are embedded as screenshot.
Stochastic EMA, SMA, VWMA + DivergenceEvery MetaTrader User knows the function to switch the stochastic calculation from simple to exponential.
So i took the original Stochastic code from TV and enhanced it for the SMA, EMA, and VWMA smoothing. If you are using a longer K Smoothing interval you will recognize a notable difference between SMA and EMA.
Standard Stochastic Calculation that is well kown
Option to switch smoothing calculation
Choice between Simple Moving Average, Exponential Moving Average, Volume Weighted Moving Average
If you have more wishes regarding the smoothing, just leave a comment i can add a lot more...
On my to-do list is also the divergence lines known from the "divergence indicator" (RSI).
I hope this helps to get better entries ;-)
Have fun!
